Sterling, 20, has reportedly turned down a new deal worth £180,000-per-week.

And McAteer, who spent four years at Anfield, believes the England international - who is being tracked by the Reds' Premier League rivals Arsenal and Chelsea - is being poorly advised.

He told talkSPORT: “It’s stop-start on these contract negotiations. It’s a little bit messy. It looks like [Raheem Sterling] is holding out for something.

“You know how the football world works, someone will be in his ear telling him this and that. I think he’s just got to knuckle down and let his performances do the talking.

SNUB: Raheem Sterling has turned down a new contract with Liverpool [GETTY]

“I think he’s doing them a disservice by saying he wants to leave because Liverpool are on the up”

Jason McAteer

“Liverpool is the right place for him, certainly for the next two or three seasons where he’s going to develop and play every week in the first team. He’s under a good manager and it’s a good young team as well.

“There are rumours of him going to Barcelona or Real Madrid, but then it’s all about a culture change.

“I just think he’s being misguided somewhere along the line. The club and Brendan will be telling him all the right things.

“Brendan is a good young coach with great ideas who has worked with youngsters before. He’s a good man manager as well and Liverpool is a massive club.

"I think he’s doing them a disservice by saying he wants to leave because Liverpool are on the up.”